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Update on WIDP John Burns Programme Director

Overview. IntroProject criteria and pipelineTransactor support for projectsGuidance and benchmarkingProgress to dateFuture Issues, challenges and developments. Intro. To support Local Authorities in England manage the procurement of the new infrastructure required to reduce the amount of biodegradable municipal waste landfilled in England to: to 11.2 m tonnes by 2010 to 7.5 m tonnes by 2013 to 5.2 m tonnes by 2020 WIDP is the Defra PFU and delivery mechanism combined. In partnership1144

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Update on WIDP John Burns Programme Director

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    1. Update on WIDP John Burns Programme Director

    2. Overview Intro Project criteria and pipeline Transactor support for projects Guidance and benchmarking Progress to date Future Issues, challenges and developments

    3. Intro To support Local Authorities in England manage the procurement of the new infrastructure required to reduce the amount of biodegradable municipal waste landfilled in England to: to 11.2 m tonnes by 2010 to 7.5 m tonnes by 2013 to 5.2 m tonnes by 2020 WIDP is the Defra PFU and delivery mechanism combined. In partnership with PUK and Local Partnerships £3.2b PFI credits

    4. PFI Credit Criteria Criteria published in May 2006 emphasise: Inter-Authority Partnership working Diversion from landfill and residual waste treatment Municipal Waste Management Strategies Site availability and planning status Following Waste Strategy 2007 publication some criteria are interpreted more specifically

    5. PFI Credit Criteria Criterion No.2 - minimum recycling rate is 50% Criteria No. 5 and 9 - pre-procurement analysis must include studies re potential heat off takers

    6. Project Pipeline £2.4 billion credits committed to 36 projects in 4 rounds with 8 projects still in application > £5bn capex potentially 6.4 million tpa diversion (risk adjusted) On average 300 jobs during construction and 40 long term per project

    7. PFI Credits – Award Rounds Three step application process Expression of Interest Outline Business Case Final Business Case Standardised EoI, OBC and FBC documentation Six monthly award rounds

    8. Award Rounds Nearly Complete

    9. Transactor Support for Authorities Point of contact for all communications with Defra Available for non-PFI projects as well as PFI projects Strengthens authority client team – does not substitute for the use of advisers Complements existing skills development and procurement QA processes Subject to an MoU

    10. When Can Transactors Help?

    11. Projects Have Closed...... 7 out of the 11 projects in procurement in Autumn 2006 have now closed. Northumberland Shropshire Cambridgeshire West Berkshire Southwark GMWDA Cumbria (PPP) 2 PPP projects approaching close, 2 aborted

    12. Pre Award Round Projects At Preferred Bidder: PFI – Wakefield (VT) PPPs – Derbyshire/Derby (UU), West Sussex (Biffa) In Dialogue (two Bidders) PFI – Cheshire (Viridor, UU) PPP – Buckinghamshire (Covanta , WRG) Oxfordshire (Viridor, WRG) Aborted PPPs - Norfolk A, Telford & Wrekin

    13. Award Round 1 – 2 Projects in Procurement MWDA Received responses to ISDS from: Covanta UU/Laing O’Rourke Shanks Sita North Yorkshire/City of York At final stage of dialogue with: Amey/Cespa Earthtech/Skanska

    14. Award Round 2 – the Short Lists Bradford Covanta/Kelda, Shanks/SSE, Earthtech/Skanska, UU/Laing/Costain Suffolk Sita, Veolia STWP MVV, Sita, UU Leeds Covanta, MVV,UU, Veolia BDR Amey/Cespa, Earthtech/Skanska, Shanks/SSE, Sita

    15. Award Round 3 – All in Procurement (1) Gloucestershire CC Biffa, Covanta, Cory/Skanska/Earthtech, Cyril Sweett/BAM Nuttalls/Hills, MVV, UU/Laing, Urbaser ,Veolia, Viridor/CNIM, WRG Leicestershire CC Biffa, UU/Laing, Veolia MK/Northamptonshire CC Amey/Cespa, Biffa, Covanta, Greenstar/E.ON, MVV, UU/Laing/Laing O'Rourke, Shanks, Urbaser SA, Viridor , WRG

    16. Award Round 3 – All in Procurement Norfolk CC tbc – September 2009 South West Devon MVV, Sita, Viridor Staffordshire CC MVV, Veolia

    17. Award Round 4A – Current Status Hertfordshire CC Covanta, E.ON, MVV, Shanks/Wheelabrator, Sita, Veolia South London Waste Partnership UU, Urbaser, Veolia, Viridor, WRG Coventry, Solihull and Warwickshire PRG Approved. Not yet OJEU’ed

    18. Award Round 4B – Current Status Outstanding Central Bedfordshire, Bedford and Luton Derbyshire & Derby Dorset Essex CC & Southend on Sea Hull and East Riding North London Waste Authority West of England

    19. *not necessarily the final contract technology

    21. Bidder Commitments – Live Bids

    22. Published Guidance

    23. Developing Guidance

    24. Issues looking forward – 2009/10 Carbon Renewable Energy/Heat/CHP SRF and Waste wood off-take markets Availability and price of lending Response to NAO report Support for post close projects Improved communication

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